Checking your credit report regularly is like going for regular health check-ups. It ensures that you’re in good shape financially. Read on to know more.
A good credit history can help you get the best deals on Credit Cards and Loans. However, even a small error in your credit report can prove harmful to this. This is why, time and again, we’ve been telling you to keep an eye on your credit report and score. You should make it a habit to check your credit report and score at least every three months.
Checking your credit report often can help you identify reporting errors from your lenders, inaccurate information, and even identity theft as and when they happen. This way, you’ll be able to take swift action. Basically, checking your credit report regularly is like going for regular health check-ups. It ensures that you’re in good shape financially.
Additional Reading: How To Read Your Credit Report
So, what exactly should you be looking for in your credit report? If you’re completely clueless, then this article is for you. Here are the most important things to watch out for in your credit report:
Are all the accounts mentioned yours?
Check all the accounts – open and closed – mentioned in your credit report and make sure that these either belong or belonged to you. If you find an account that isn’t yours (or never was), then you must act quickly to get it removed from your credit report. Your Credit Score could take a beating if the false account has a negative status or comes with a high outstanding balance.
Are all the enquiries mentioned made by you?
Soft enquiries like checking your Credit Score doesn’t have any negative consequences. Haven’t checked yours lately? Click here to check yours in just three minutes. However, hard enquiries such as applying for multiple loans and Credit Cards in a short span of time have an adverse effect on your Credit Score.
So, make sure you check the enquiries section and confirm if all the enquiries listed were made by you. Other enquiries, other than the ones made by you, if any, is a sign of identity theft. It suggests that someone was trying to open accounts using your information. These must be reported as soon as possible.
Additional Reading: 7 Things You Won’t Find In Your Credit Report
Is your personal information correct?
Although your personal information such as your name, addresses, employment details, etc. don’t really have an effect on your financial history and Credit Score, it is still wise to keep these up-to-date. Future lenders may base their offers and decisions on this information. And incorrect information could cost you a really good offer!
P.S. you don’t have to worry if your personal information isn’t updated immediately in your credit report. However, if there’s an update, make sure you ask your lenders to report the update to credit bureaus as soon as possible.
Is your account(s) information correct?
It is very important to check your listed accounts for reporting errors and suspicious activities. Your payment history has a significant impact on your Credit Score. Lenders usually send your payment-related updated to credit bureaus and these get included in your credit report.
Additional Reading: What Are The Components Of Your Credit Score?
Late payments, missed payments, etc. can bring down your Credit Score drastically. Even if these are reporting errors, you’ll be the one to suffer the consequences if you aren’t vigilant enough to check your report and identify these errors on a regular basis.
Did you make a late payment? You can request your lender to help remove it from your credit report. Read this to know more – How To Correct A Late Payment Record On Your Credit Report.
Additional Reading: How To Fix An Error In Your Credit Report
Now that you know what you must check in your credit report to keep your finances healthy, maybe it’s time that you get your report. You can now check your Experian credit report in just 3 minutes. Click the link below to continue.
it is a very nice article with very important information in it.
Its amazing………..will help me lot in using credit card.
Nice article. #6 is very important.
how to approach CIBIL for having the credit score
Hi ,even after repaying the latest credit bill,whether the cibil score gets updated ,or should i close the card to get good updated cibil score.